Treasurer Stacy Garrity, CFA Institute Announce Pennsylvania Treasury Department’s Compliance with the Global Investment Performance Standards (GIPS®)

Treasurer Stacy Garrity and CFA Institute today announced that the Pennsylvania Treasury Department has claimed compliance with the Global Investment Performance Standards (GIPS®) from the CFA Institute. Introduced in 1999, the GIPS standards are universal, voluntary standards based on the fundamental principles of full disclosure and fair representation of investment performance.

“Achieving GIPS compliance is a testament to our commitment to maintaining the highest standards in overseeing the Commonwealth's assets,” Treasurer Garrity said. “Pennsylvania taxpayers depend on Treasury to be a responsible steward of their hard-earned money and put it to the best use to meet the state’s short-term needs and long-term goals, and this compliance achievement shows that we’re doing that job right.”

The GIPS standards are administered globally by CFA Institute and have been adopted by more than 1,700 firms and asset owners in more than 50 markets around the world, including all 25 of the top 25 asset management firms for some or all of their assets, according to data from Pensions & Investments. Pennsylvania Treasury Department is the first state treasury to comply with the Global Investment Performance Standards, joining a distinct group of public pension funds to claim compliance around the world.

While many asset owners require their external investment managers to comply with the GIPS Standards, it is less common for asset owners to apply the principles in their own performance reporting to oversight boards, governing bodies, and plan beneficiaries. By adopting the GIPS Standards, the Pennsylvania Treasury Department has displayed ethical leadership in the industry by adopting the highest performance-reporting standards.

“While many asset managers globally have claimed GIPS compliance over the years, the journey for asset owners like the Pennsylvania Treasury Department is newer. The early adopters have shown leadership in the investment industry and a commitment to complete, transparent, and fairly presented performance reporting,” said Chris Fidler, Head, Global Industry Standards for CFA Institute. “As the first state treasury in the United States to claim compliance, the Pennsylvania Treasury has set the bar for other state treasury departments to follow suit.  We encourage more asset owners to do the same to demonstrate a voluntary commitment to adhering to global best practice for presenting investment performance.”

The compliance initiative at Treasury was spearheaded by Treasury’s Deputy Chief Investment Officer, Lloyd Ebright.

“Treasury’s $55 billion in ‘asset owner’ assets include not only over $30 billion in traditional short-term investments, but more than $15 billion across several multi-asset pools, plus non-discretionary investments,” Ebright said. “I’m proud that we were able to achieve compliance building upon existing resources and systems already in place at Treasury.”

“Pennsylvania is lucky to have a team at Treasury of investment professionals with the skills, knowledge and a true dedication to public service,” Treasurer Garrity said. “I’m proud of the great work we are able to accomplish for the taxpayers we serve every day.”

Though not required, the asset-owner compliance was verified by The Spaulding Group.

For more information on the GIPS standards, visit www.gipsstandards.org.

About Pennsylvania Treasury
The Pennsylvania Treasury Department invests more than $50 billion and serves as the statutory custodian for more than $170 billion of Commonwealth funds. It is responsible for the receipt and deposit of state monies, and oversight of all withdrawals and deposits from state agencies. Treasury also administers several programs, including Unclaimed Property, PA 529, PA ABLE and INVEST, that help families, municipal governments, and nonprofit organizations prepare for the future. Treasury also maintains the award-winning Transparency Portal, which provides an in-depth look at how taxpayer dollars are being spent.